Tesla hands $29B comp package to Elon Musk amid ‘AI talent war’

Tesla’s Board of Directors has announced a new compensation package for Elon Mask, CEO of nearly $ 20 billion, quoting “Forever AI Talent War and Tesla’s position at a critical reflection point” as a reason for giving the company.

The huge pay package is allocated through the 2019 equity incentive plan that has already been approved by shareholders, so it will not be a vote, according to Filing a regulatory And Ann LiptonProfessor of Colorado Law School University. Tesla says it will give a “long -term CEO compensation strategy” for a vote at the annual shareholder meeting of the company scheduled for November.

If the Delaware Supreme Court decides to reverse a judge, the new compensation plan of the musk will be completely canceled Decision of January 2024 Hurrying to the Kastur’s 2018 compensation package due to how it was discussed behind the screen. That salary package was worth about $ 56 billion.

Kasturi threatened to stop working with AI and Robotics in Tesla Unless he achieved further control over the companyThe Before these threats are now a million dollar talent warfare before FaithIncluding attachments and crowds of acquisition.

At the same time, Kasturi Jai has created its own AI company outside Tesla, which is now the owner of his social media platform X. Tesla during the time it happened Sales have disappeared And its brand was damaged due to the involvement of the musk in the Trump administration.

Tesla D On Monday, the board of directors formed a special committee comprising Chairman Robin Denhom and board member Kathleen Wilson-Asponson to sort a new package earlier this year.

The award that they finally decided is involved in giving a 5 million million shares that will be vested within two years, but conditions that he “served the senior leadership role in Tesla” during this period “and retains the stock for five years. Unlike Tesla’s previous award to Kasturi, this new package does not seem to be bound to increase the company’s share price.

Tesla on Monday at premark trading prices, it will be about $ 29 billion. The price of purchase per share of musk should pay $ 23.34 per share, which brings him about $ 26.7 billion. Depending on how the Delaware Supreme Court rules the Tesla’s appeal, the package can be seized, so there may not be a ‘double dive’ according to Tesla.

The company wrote, “If the courts judgment for us, the alternatives will not be able to hold this new award under the 2018 CEO Performance Award.”

Tesla said that Kasturi and his brother Kimbal, who were also members of the board, recovered himself from the process of building this new compensation package. Delaware Chancery Court Judge Chancellor Cathalene McKarker was one of the reasons for McKarm Decided to hurt it To follow a trial arose by a shareholder case.

McCurer said that the process of creating the 2018 plan was “deeply defective” because of his deep connection with the mask input and Tesler board people. He criticized the plan that not included in any of the terms that “at any time prescribed the amount” would be the possible cause of two years of promise included in the new plan not to include Tesla.

McKarik’s decision was the biggest fan of Tesla and one of its shareholders was shocked. This was the inspiration to re -incorporate the company from Delaware to Texas, a state with less established shareholder protection written on its laws. The Tesla salary package went on to “re -confirm” the shareholders’ voting. However Confirmed his decision in December 2024Voting and Tesla’s legal argument was called “unprecedented theory [that] Go against multiple strains of the disposal law ”

Update: This story and title have been updated to reflect the prize that the award was approved by the Tesler Board and no shareholder vote was needed.